New Delhi: The Reserve Bank of India (RBI) on Monday released the June 2025 issue of the Financial Stability Report (FSR), and stated that the Indian economy remains the key driver of global growth, underpinned by sound macroeconomic fundamentals and policies.
The RBI report which reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on the resilience of the Indian financial system and risks to financial stability, highlighted that the financial markets remain volatile mainly due to shifting policy and geopolitical environment, and the elevated economic and trade policy uncertainties are testing resilience of global economy and financial system.
The central banking authority warned that besides the existing geopolitical tensions, vulnerabilities such as soaring public debt levels and elevated asset valuations have the potential to amplify fresh shocks.
It, however, expressed confidence in the Indian economy to tackle and sail through the challenges.
The RBI assured that India’s “financial system is exhibiting resilience fortified by healthy balance sheets of banks and non-banks”. “Financial conditions have eased supported by accommodative monetary policy and low volatility in financial markets. The strength of the corporate balance sheets also lends support to overall macroeconomic stability,” the report mentioned.
The Reserve Bank backed its assessment by highlighting that the commercial banks (SCBs) are bolstered by robust capital buffers and the Non-banking financial companies (NBFCs) remain healthy with sizable capital buffers, robust earnings and improving asset quality.
The consolidated solvency ratio of the insurance sector also remains above
the minimum threshold limit.
In June 2025, the RBI announced a repo rate cut by 50 basis points (bps) to 5.50 per cent with immediate effect to spur growth
The National Statistical Office (NSO) vide its estimates of May 30, 2025, has shown real GDP growth in Q4:2024-25 at 7.4 per cent as against 6.4 per cent in Q3.
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